VRM - Vroom Announces Record Ecommerce Gross Profit Per Unit of $3629

August, 08 2022 04:05 PM Vroom Inc.

Substantial Progress on Long-Term Roadmap

Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the second quarter ended June 30, 2022.

HIGHLIGHTS OF SECOND QUARTER 2022 VERSUS FIRST QUARTER 2022

Ecommerce gross profit per unit of $3,629, up 106%
SG&A expenses decreased $35.0 million
Net loss improved from $310.5 million to $115.1 million
Adjusted EBITDA loss improved from $107.4 million to $85.6 million

Tom Shortt, Chief Executive Officer of Vroom, commented: “The second quarter of 2022 marked substantial progress for Vroom against our four strategic initiatives outlined in our recent investor and analyst event. We announced record Ecommerce gross profit per unit and improved our adjusted EBITDA from the prior quarter. We also began scaling UACC-originated loans for Vroom, which contributed to our improvement in gross profit per unit. I would like to thank all of our Vroommates and our third-party partners for their support in serving our customers.”

Bob Krakowiak, Vroom’s Chief Financial Officer, commented: “I am proud of our achievements in the second quarter. Our Ecommerce gross profit per unit of $3,629 reflects our commitment to our first key objective of prioritizing unit economics. We are making progress in reducing our cost structure as detailed in our business realignment plan presented in May. We realized a $35 million sequential improvement in SG&A and, as a result of our initiatives, we ended the quarter with $533 million in liquidity. Based on our progress, we are continuing to forecast year-end liquidity of approximately $500 million at the midpoint.”

SECOND QUARTER 2022 FINANCIAL RESULTS

All financial comparisons are on a year-over-year basis unless otherwise noted.

Ecommerce Results











































Three Months Ended June 30,









Six Months Ended June 30,










2022


2021



Change


% Change


2022


2021



Change


% Change



(in thousands, except unit data and average days to sale)









(in thousands, except unit data and average days to sale)








Ecommerce units sold



9,233




18,268




(9,035
)


(49.5
)%



28,706




33,772




(5,066
)


(15.0
)%
Ecommerce revenue:






























Vehicle revenue

$

308,123


$

559,010


$

(250,887
)


(44.9
)%

$

960,747


$

967,324


$

(6,577
)


(0.7
)%
Product revenue



13,509




20,653




(7,144
)


(34.6
)%



36,248




34,647




1,601



4.6
%
Total ecommerce revenue

$

321,632


$

579,663


$

(258,031
)


(44.5
)%

$

996,995


$

1,001,971


$

(4,976
)


(0.5
)%
Ecommerce gross profit:






























Vehicle gross profit

$

20,000


$

28,985


$

(8,985
)


(31.0
)%

$

31,580


$

46,828


$

(15,248
)


(32.6
)%
Product gross profit



13,509




20,653




(7,144
)


(34.6
)%



36,248




34,647




1,601



4.6
%
Total ecommerce gross profit

$

33,509


$

49,638


$

(16,129
)


(32.5
)%

$

67,828


$

81,475


$

(13,647
)


(16.7
)%
Average vehicle selling price per ecommerce unit

$

33,372


$

30,601


$

2,771



9.1
%

$

33,469


$

28,643


$

4,826



16.8
%
Gross profit per ecommerce unit:






























Vehicle gross profit per ecommerce unit

$

2,166


$

1,587


$

579



36.5
%

$

1,100


$

1,387


$

(287
)


(20.7
)%
Product gross profit per ecommerce unit



1,463




1,131




332



29.4
%



1,263




1,026




237



23.1
%
Total gross profit per ecommerce unit

$

3,629


$

2,718


$

911



33.5
%

$

2,363


$

2,413


$

(50
)


(2.1
)%
Ecommerce average days to sale



128




68




60



88.2
%



110




76




34



44.7
%

Results by Segment



Three Months Ended June 30,








Six Months Ended June 30,









2022


2021 ⁽¹⁾


Change


% Change


2022


2021 ⁽¹⁾


Change


% Change



(in thousands, except unit data)








(in thousands, except unit data)







Units:
























Ecommerce


9,233



18,268



(9,035
)


(49.5
)%


28,706



33,772



(5,066
)


(15.0
)%
Wholesale


5,867



10,020



(4,153
)


(41.4
)%


15,980



18,661



(2,681
)


(14.4
)%
All Other ⁽²⁾


1,047



1,583



(536
)


(33.9
)%


2,746



3,358



(612
)


(18.2
)%
Total units


16,147



29,871



(13,724
)


(45.9
)%


47,432



55,791



(8,359
)


(15.0
)%

























Revenue:
























Ecommerce

$
321,632


$
579,663


$
(258,031
)


(44.5
)%

$
996,995


$
1,001,971


$
(4,976
)


(0.5
)%
Wholesale


82,901



128,108



(45,207
)


(35.3
)%


222,885



246,132



(23,247
)


(9.4
)%
Retail Financing ⁽³⁾


32,121



—



32,121



100.0
%


79,808



—



79,808



100.0
%
All Other ⁽⁴⁾


38,783



54,119



(15,336
)


(28.3
)%


99,524



104,905



(5,381
)


(5.1
)%
Total revenue

$
475,437


$
761,890


$
(286,453
)


(37.6
)%

$
1,399,212


$
1,353,008


$
46,204



3.4
%
Gross profit (loss):
























Ecommerce

$
33,509


$
49,638


$
(16,129
)


(32.5
)%

$
67,828


$
81,475


$
(13,647
)


(16.7
)%
Wholesale


(1,934
)


8,516



(10,450
)


(122.7
)%


(4,686
)


8,234



(12,920
)


(156.9
)%
Retail Financing ⁽³⁾


28,720



—



28,720



100.0
%


73,682



—



73,682



100.0
%
All Other ⁽⁴⁾


6,062



4,974



1,088



21.9
%


11,173



9,595



1,578



16.4
%
Total gross profit

$
66,357


$
63,128


$
3,229



5.1
%

$
147,997


$
99,304


$
48,693



49.0
%
Gross profit (loss) per unit ⁽⁵⁾ :
























Ecommerce

$
3,629


$
2,718


$
911



33.5
%

$
2,363


$
2,413


$
(50
)


(2.1
)%
Wholesale

$
(330
)

$
850


$
(1,180
)


(138.8
)%

$
(293
)

$
441


$
(734
)


(166.4
)%

(1)

In the second quarter of 2022, we reevaluated our reporting segments based on relative revenue and gross profit and significance in our long term strategy. As a result of that analysis, we determined to no longer report TDA as a separate operating segment. As of June 30, 2022, we are organized into three reportable segments: Ecommerce, Wholesale, and Retail Financing. We reclassified TDA revenue and TDA gross profit from the TDA reportable segment to the “All Other” category to conform to current year presentation.
(2)

All Other units consist of retail sales of used vehicles from TDA.
(3)

The Retail Financing segment represents UACC’s operations with its network of third-party dealership customers as of the closing of the UACC acquisition in February 2022.
(4)

All Other revenues and gross profit consist of retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicles sales and the CarStory business.
(5)

Gross profit per unit metrics exclude the Retail Financing gross profit and All Other gross profit.

SG&A







































Three Months Ended June 30,








Six Months Ended June 30,










2022



2021


Change


% Change



2022



2021


Change


% Change



(in thousands)








(in thousands)







Compensation & benefits

$

68,891


$

51,811


$
17,080



33.0
%

$

143,416


$

91,681


$
51,735



56.4
%
Marketing expense



21,138




23,495



(2,357
)


(10.0
)%



54,874




53,053



1,821



3.4
%
Outbound logistics



8,232




20,153



(11,921
)


(59.2
)%



34,980




35,271



(291
)


(0.8
)%
Occupancy and related costs



5,721




4,042



1,679



41.5
%



11,367




7,964



3,403



42.7
%
Professional fees



6,827




4,259



2,568



60.3
%



20,126




8,257



11,869



143.7
%
Software and IT costs



11,306




6,855



4,451



64.9
%



22,129




12,135



9,994



82.4
%
Other



30,875




13,283



17,592



132.4
%



54,092




24,403



29,689



121.7
%
Total selling, general & administrative expenses

$

152,990


$

123,898


$
29,092



23.5
%

$

340,984


$

232,764


$
108,220



46.5
%

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures.

EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain, are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding securitization gain

We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense and we calculate Adjusted EBITDA as EBITDA adjusted to exclude realignment costs, acquisition related costs, change in fair value of finance receivables, goodwill impairment charge and other costs, which relate to the write off of the upfront shares issued as part of the Rocket Auto agreement and previously recognized within "Other assets". Changes in fair value of finance receivables can fluctuate significantly from period to period and relate primarily to historical loans and debt which have been securitized, and acquired on February 1, 2022 from UACC. Our ongoing business model is to originate or purchase finance receivables with the intent to sell which we recognize at the lower of cost or fair value. Therefore, these historical finance receivables acquired, which are accounted for under the fair value option, will experience fluctuations in value from period to period. We believe it is appropriate to remove this temporary volatility from our Adjusted EBITDA results to better reflect our ongoing business model. Additionally, these historical finance receivables acquired from UACC are expected to run-off within approximately 15 months. We calculate Adjusted EBITDA excluding securitization gain as Adjusted EBITDA adjusted to exclude the securitization gain from the sale of UACC's finance receivables, and believe that it provides a useful perspective on the underlying operating results and trends and a means to compare our period-over-period results. The following table presents a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding securitization gain to net loss, which is the most directly comparable U.S. GAAP measure:



Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021



(in thousands)


(in thousands)

Net loss

$
(115,089
)

$
(65,807
)

$
(425,548
)

$
(142,996
)
Adjusted to exclude the following:












Interest expense


9,533



3,880



18,913



7,692

Interest income


(3,935
)


(2,062
)


(7,887
)


(4,358
)
(Benefit) provision for income taxes


256



194



(22,984
)


350

Depreciation and amortization


10,115



3,122



18,010



6,028

EBITDA

$
(99,120
)

$
(60,673
)

$
(419,496
)

$
(133,284
)
Realignment costs

$
9,529


$
—


$
9,529


$
—

Acquisition related costs


—



—



5,653



—

Change in fair value of finance receivables


1,846



—



7,467



—

Goodwill impairment charge


—



—



201,703



—

Other


2,127



—



2,127



—

Adjusted EBITDA

$
(85,618
)

$
(60,673
)

$
(193,017
)

$
(133,284
)
Securitization gain


—



—


$
(29,617
)


—

Adjusted EBITDA excluding securitization gain

$
(85,618
)

$
(60,673
)

$
(222,634
)

$
(133,284
)

Non-GAAP net loss, Non-GAAP net loss per share, Non-GAAP net loss excluding securitization gain, and Non-GAAP net loss per share excluding securitization gain

We calculate Non-GAAP net loss as net loss adjusted to exclude realignment costs, acquisition related costs, change in fair value of finance receivables, goodwill impairment charge, and other costs, which relate to the write off of the upfront shares issued as part of the Rocket Auto agreement and previously recognized within "Other assets". We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding. We calculate Non-GAAP net loss excluding securitization gain as Non-GAAP net loss adjusted to exclude the securitization gain from the sale of UACC's finance receivables. We calculate Non-GAAP net loss per share excluding securitization gain as Non-GAAP net loss excluding securitization gain divided by weighted average number of shares outstanding. The following table presents a reconciliation of Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain to net loss and net loss per share, which are the most directly comparable U.S. GAAP measures:



Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021



(in thousands, except share and per share amounts)

Net loss

$
(115,089
)

$
(65,807
)

$
(425,548
)

$
(142,996
)
Net loss attributable to common stockholders

$
(115,089
)

$
(65,807
)

$
(425,548
)

$
(142,996
)
Add: Realignment costs


9,529



—



9,529



—

Add: Acquisition related costs


—



—



5,653



—

Add: Change in fair value of finance receivables


1,846



—



7,467



—

Add: Goodwill impairment charge


—



—



201,703



—

Add: Other


2,127



—



2,127



—

Non-GAAP net loss

$
(101,587
)

$
(65,807
)

$
(199,069
)

$
(142,996
)
Subtract: Securitization gain


—



—



(29,617
)


—

Non-GAAP net loss excluding securitization gain

$
(101,587
)

$
(65,807
)

$
(228,686
)

$
(142,996
)













Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted


138,075,210



136,507,177



137,667,419



136,002,344














Net loss per share, basic and diluted

$
(0.83
)

$
(0.48
)

$
(3.09
)

$
(1.05
)
Impact of realignment costs


0.07



—



0.07



—

Impact of acquisition related costs


—



—



0.04



—

Impact of change in fair value of finance receivables


0.01



—



0.05



—

Impact of goodwill impairment charge


—



—



1.47



—

Impact of other


0.02



—



0.02



—

Non-GAAP net loss per share, basic and diluted

$
(0.73
)

$
(0.48
)

$
(1.44
)

$
(1.05
)
Impact of securitization gain


—



—



(0.22
)


—

Non-GAAP net loss per share excluding securitization gain, basic and diluted

$
(0.73
)

$
(0.48
)

$
(1.66
)

$
(1.05
)

SECOND QUARTER 2022 AS COMPARED TO FIRST QUARTER 2022











Three Months Ended June 30,

Three Months Ended March 31,








2022

2022


Change


% Change


(in thousands, except unit data)







Total revenues

$
475,437


$
923,775


$
(448,338
)


(48.5
)%
Total gross profit

$
66,357


$
81,640


$
(15,283
)


(18.7
)%
Ecommerce units sold


9,233



19,473



(10,240
)


(52.6
)%
Ecommerce revenue

$
321,632


$
675,364


$
(353,732
)


(52.4
)%
Ecommerce gross profit

$
33,509


$
34,320


$
(811
)


(2.4
)%
Vehicle gross profit per ecommerce unit

$
2,166


$
595


$
1,571



264.0
%
Product gross profit per ecommerce unit


1,463



1,168



295



25.3
%
Total gross profit per ecommerce unit

$
3,629


$
1,763


$
1,866



105.8
%
Wholesale units sold


5,867



10,113



(4,246
)


(42.0
)%
Wholesale revenue

$
82,901


$
139,984


$
(57,083
)


(40.8
)%
Wholesale gross loss

$
(1,934
)

$
(2,753
)

$
819



29.7
%
Wholesale gross loss per unit

$
(330
)

$
(272
)

$
(58
)


(21.2
)%
Retail Financing revenue

$
32,121


$
47,687


$
(15,566
)


(32.6
)%
Retail Financing gross profit

$
28,720


$
44,963


$
(16,243
)


(36.1
)%
Total selling, general, and administrative expenses

$
152,990


$
187,994


$
(35,004
)


(18.6
)%



Three Months Ended June 30,


Three Months Ended March 31,









2022


2022


Change


% Change



(in thousands)




Net loss

$
(115,089
)

$
(310,459
)

$
195,370



62.9
%
Adjusted to exclude the following:












Interest expense


9,533



9,380



153



1.6
%
Interest income


(3,935
)


(3,952
)


17



0.4
%
(Benefit) provision for income taxes


256



(23,240
)


23,496



101.1
%
Depreciation and amortization


10,115



7,895



2,220



28.1
%
EBITDA

$
(99,120
)

$
(320,376
)

$
221,256



69.1
%
Realignment costs

$
9,529


$
—


$
9,529



100.0
%
Acquisition related costs


—



5,653



(5,653
)


(100.0
)%
Change in fair value of finance receivables


1,846



5,621



(3,775
)


(67.2
)%
Goodwill impairment charge


—



201,703



(201,703
)


(100.0
)%
Other


2,127



—



2,127



100.0
%
Adjusted EBITDA

$
(85,618
)

$
(107,399
)

$
21,781



20.3
%
Securitization gain


—



(29,617
)


29,617



100.0
%
Adjusted EBITDA excluding securitization gain

$
(85,618
)

$
(137,016
)

$
51,398



37.5
%

Conference Call & Webcast Information

Vroom management will discuss these results and other information regarding the Company during a conference call and audio webcast Tuesday, August 8, 2022 at 8:30 a.m. ET.

To access the conference call, please register at this embedded link . Registered participants will be sent a unique PIN to access the call. A listen-only webcast will also be available via the same link and at ir.vroom.com . An archived webcast of the conference call will be accessible on the website within 48 hours of its completion.

About Vroom (Nasdaq: VRM)

Vroom is an innovative, end-to-end ecommerce platform that offers a better way to buy and a better way to sell used vehicles. The Company’s scalable, data-driven technology brings all phases of the vehicle buying and selling process to consumers wherever they are and offers an extensive selection of vehicles, transparent pricing, competitive financing, and contact-free, at-home pick-up and delivery. For more information visit www.vroom.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding expected timelines, our execution of and the expected benefits from our business realignment plan and cost-saving initiatives, our expectations regarding our business strategy and plans, including our ongoing ability to integrate and develop United Auto Credit Corporation into a captive finance operation, and, for future results of operations and financial position, including our ability to improve our unit economics and our outlook for the full year ended December 31, 2022, including with respect to our liquidity. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30, 2022, each of which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov . All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

VROOM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited)










As of June 30,


As of December 31,








2022


2021

ASSETS






Current Assets:






Cash and cash equivalents

$
532,642


$
1,132,325

Restricted cash (including restricted cash of consolidated VIEs of $33.5 million and $0 million, respectively)


153,741



82,450

Accounts receivable, net of allowance of $19.5 million and $8.9 million, respectively


60,122



105,433

Finance receivables at fair value (including finance receivables of consolidated VIEs of $13.6 million and $0 million, respectively)


14,461



—

Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $253.1 million and $0 million, respectively)


295,303



—

Inventory


535,772



726,384

Beneficial interests in securitizations


13,432



—

Prepaid expenses and other current assets


61,430



55,700

Total current assets


1,666,903



2,102,292

Finance receivables at fair value (including finance receivables of consolidated VIEs of $164.6 million and $0 million, respectively)


213,323



—

Property and equipment, net


49,836



37,042

Intangible assets, net


172,425



28,207

Goodwill


—



158,817

Operating lease right-of-use assets


11,281



15,359

Other assets


28,531



25,033

Total assets

$
2,142,299


$
2,366,750

LIABILITIES AND STOCKHOLDERS’ EQUITY






Current Liabilities:






Accounts payable

$
43,631


$
52,651

Accrued expenses


107,091



121,508

Vehicle floorplan


422,452



512,801

Warehouse credit facilities of consolidated VIEs


210,577



—

Current portion of securitization debt of consolidated VIEs at fair value


115,325



—

Deferred revenue


17,800



75,803

Operating lease liabilities, current


7,097



6,889

Other current liabilities


22,139



57,604

Total current liabilities


946,112



827,256

Long term debt, net of current portion (including securitization debt of consolidated VIEs of $51.8 million and $0 million at fair value, respectively)


674,331



610,618

Operating lease liabilities, excluding current portion


8,347



9,592

Other long-term liabilities


18,458



4,090

Total liabilities


1,647,248



1,451,556

Commitments and contingencies (Note 13)






Stockholders’ equity:






Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 138,102,755 and 137,092,891 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively


135



135

Additional paid-in-capital


2,069,246



2,063,841

Accumulated deficit


(1,574,330
)


(1,148,782
)
Total stockholders’ equity


495,051



915,194

Total liabilities and stockholders’ equity

$
2,142,299


$
2,366,750

VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)









Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021

Revenue:












Retail vehicle, net

$
341,724


$
608,116


$
1,048,910


$
1,062,439

Wholesale vehicle


82,901



128,108



222,885



246,132

Product, net


14,324



22,306



38,773



37,878

Finance


32,121



—



79,808



—

Other


4,367



3,360



8,836



6,559

Total revenue


475,437



761,890



1,399,212



1,353,008

Cost of sales:












Retail vehicle


319,903



577,636



1,015,412



1,012,903

Wholesale vehicle


84,834



119,592



227,571



237,898

Finance


3,402



—



6,126



—

Other


941



1,534



2,106



2,903

Total cost of sales


409,080



698,762



1,251,215



1,253,704

Total gross profit


66,357



63,128



147,997



99,304

Selling, general and administrative expenses


152,990



123,898



340,984



232,764

Depreciation and amortization


10,039



3,058



17,895



5,900

Impairment charges


3,407



—



205,110



—

Loss from operations


(100,079
)


(63,828
)


(415,992
)


(139,360
)
Interest expense


9,533



3,880



18,913



7,692

Interest income


(3,935
)


(2,062
)


(7,887
)


(4,358
)
Other loss (income), net


9,156



(33
)


21,514



(48
)
Loss before provision for income taxes


(114,833
)


(65,613
)


(448,532
)


(142,646
)
Provision (benefit) for income taxes


256



194



(22,984
)


350

Net loss

$
(115,089
)

$
(65,807
)

$
(425,548
)

$
(142,996
)
Net loss per share attributable to common stockholders, basic and diluted

$
(0.83
)

$
(0.48
)

$
(3.09
)

$
(1.05
)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted


138,075,210



136,507,177



137,667,419



136,002,344

VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)






Six Months Ended June 30,


2022

2021

Operating activities







Net loss

$
(425,548
)
$
(142,996
)
Adjustments to reconcile net loss to net cash used in operating activities:







Impairment charges


205,110


—

Depreciation and amortization


18,010


6,028

Amortization of debt issuance costs


2,523


698

Realized gain on the 2022-1 securitization transaction


(29,617
)

—

Deferred taxes


(23,855
)

—

Losses on finance receivables and securitization debt, net


29,457


—

Stock-based compensation expense


5,405


8,212

Provision to record inventory at lower of cost or net realizable value


(2,006
)

3,093

Other, net


3,466


2,818

Changes in operating assets and liabilities:







Finance receivables, held for sale







Originations of finance receivables held for sale


(319,314
)

—

Principal payments received on finance receivables held for sale


23,179


—

Proceeds from sale of finance receivables held for sale, net


271,820


—

Other


(4,011
)

—

Accounts receivable


34,192


(41,393
)
Inventory


192,618


(99,412
)
Prepaid expenses and other current assets


13,513


(26,669
)
Other assets


(1,670
)

(3,948
)
Accounts payable


(15,352
)

36,507

Accrued expenses


(23,832
)

26,306

Deferred revenue


(58,003
)

16,788

Other liabilities


(33,604
)

62,117

Net cash used in operating activities


(137,519
)

(151,851
)
Investing activities







Finance receivables at fair value







Originations of finance receivables at fair value


(49,475
)

—

Principal payments received on finance receivables at fair value


74,690


—

Proceeds from sale of finance receivables at fair value, net


29,026


—

Principal payments received on beneficial interests


2,720


—

Purchase of property and equipment


(16,046
)

(8,943
)
Acquisition of business, net of cash acquired of $47.9 million


(267,488
)

(76,145
)
Net cash used in investing activities


(226,573
)

(85,088
)
Financing activities







Principal repayment under secured financing agreements


(105,563
)

—

Proceeds from vehicle floorplan


1,074,184


1,070,110

Repayments of vehicle floorplan


(1,164,533
)

(1,035,727
)
Proceeds from warehouse credit facilities


261,700


—

Repayments of warehouse credit facilities


(228,744
)

—

Other financing activities


(1,344
)

—

Proceeds from issuance of convertible senior notes


—


625,000

Issuance costs paid for convertible senior notes


—


(16,175
)
Proceeds from exercise of stock options


—


4,381

Net cash (used in) provided by financing activities


(164,300
)

647,589

Net (decrease) increase in cash, cash equivalents and restricted cash


(528,392
)

410,650

Cash, cash equivalents and restricted cash at the beginning of period


1,214,775


1,090,039

Cash, cash equivalents and restricted cash at the end of period

$
686,383

$
1,500,689









Supplemental disclosure of cash flow information:







Cash paid for interest

$
16,299

$
6,713

Cash paid for income taxes

$
2,062

$
269

Supplemental disclosure of non-cash investing and financing activities:







Fair value of beneficial interests received in securitization transactions

$
16,473

$
—

Issuance of common stock for CarStory acquisition

$
—

$
39,030

Fair value of unvested stock options assumed for acquisition of business

$
—

$
1,017

View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005509/en/

Investor Relations:
Vroom
Liam Harrington
investors@vroom.com

Media Contact:
Current Global
Danny Finlay
dfinlay@currentglobal.com

Company Name:	Vroom Inc.
Stock Symbol:	VRM
Market:	NASDAQ
Website:	vroom.com

Twitter